Bitcoin Price Plummets Below $65,000 as Six-Week Decline Intensifies Market Pressure

Bitcoin’s dramatic 5% nosedive on Sunday evening, breaking below the critical $65,000 threshold within a two-hour window, has crystallized growing concerns about the cryptocurrency’s extended weakness. The world’s largest digital asset now trades at $64,797, marking a 4.67% decline over the past 24 hours and a troubling 5.54% drop across the week.

This latest selloff adds another layer to what has become Bitcoin’s most challenging period since the 2018 bear market. The cryptocurrency is now perilously close to completing five consecutive months of losses—a feat not achieved since the brutal six-month decline that began in June 2018. With February already down 13.98%, the signs point toward extending this negative streak.

The technical picture reveals the depth of Bitcoin’s current struggles. The asset continues trading below its 200-day exponential moving average, a key technical indicator that typically signals weakening bullish momentum. This positioning reflects the broader shift in market dynamics, where institutional confidence has wavered significantly from the euphoric highs of late 2024.

Market structure data exposes the underlying pressure points driving this decline. Bitcoin self-custody holders—those who maintain control of their assets through private wallets—are sitting on $27.8 billion in unrealized losses. This massive paper loss mirrors the institutional pain, with U.S. Bitcoin ETF exposure contracting by two-thirds from its 2024 peak, representing an $8.5 billion reduction since October.

The convergence of retail and institutional stress creates a feedback loop that amplifies selling pressure. When both segments face similar levels of distress, the market lacks the natural buyer support that typically emerges during corrections. The average Bitcoin ETF investor now carries a 20% paper loss, creating vulnerability to capitulation selling should prices continue their descent.

Mining companies have responded to these pressures by fundamentally altering their operational strategies. Bitdeer, led by cryptocurrency veteran Jihan Wu, liquidated its entire Bitcoin treasury—approximately 943 BTC worth $64 million—signaling a complete shift from accumulation to immediate monetization of mining output. This strategic pivot reflects the compressed margins post-halving mining companies face in the current environment.

MARA Holdings has taken a different approach, diversifying into artificial intelligence infrastructure through its $168 million acquisition of a controlling stake in Exaion. This move represents the industry’s broader transformation, where energy-intensive operations are being repurposed for higher-margin AI and high-performance computing services.

The market’s technical condition suggests we may be approaching an inflection point. Bitcoin currently trades two standard deviations below its 20-day moving average, a statistical extreme that has occurred only three times in the past five years. Historical precedent suggests such oversold conditions often precede short-term rebounds within the following 20 trading days.

Sentiment indicators have reached levels not seen since the depths of the previous bear market. The fear and greed index has plummeted to extremes last witnessed in June 2022, while Google searches for “Bitcoin to zero” have spiked across the United States. These contrarian indicators often emerge near significant market turning points.

The broader cryptocurrency ecosystem reflects this stress through its market capitalization, which has contracted to $2.23 trillion. Bitcoin’s dominance has paradoxically strengthened to 58.1%, indicating that while the entire sector faces pressure, alternative cryptocurrencies are experiencing even more severe declines.

Institutional flows tell a complex story. While traditional Bitcoin ETFs experience outflows, the stablecoin market has surged 48.9% to reach $311 billion in 2025, suggesting that institutional participation continues but with a preference for more stable instruments during volatile periods.

The current price action occurs against a backdrop of evolving regulatory clarity and infrastructure development. BlackRock’s announcement that its tokenized fund BUIDL will trade on Uniswap represents continued institutional adoption of decentralized finance protocols, even as Bitcoin faces headwinds.

Looking forward, several factors could influence Bitcoin’s trajectory. The combination of extreme oversold technical conditions, historically low sentiment readings, and the mining industry’s structural adaptations suggests the current decline may be creating the foundation for future recovery. However, the duration and severity of this correction will largely depend on whether institutional demand stabilizes and retail sentiment begins to recover from current extremes.

The next critical test comes with February’s close. Should the month end in negative territory, Bitcoin will officially record its longest losing streak since 2018, potentially setting the stage for either capitulation selling or the emergence of value-seeking buyers attracted by significantly lower prices.